Zoom secures over 90 percent growth in Q2
Friday, September 6, 2019
Total revenue for the quarter was $145.8 million, up 96% year-over-year with GAAP income from operations for the quarter ending on $2.3 million, compared to…
Zoom Video Communications, a provider of video-first unified communications, today announced financial results for the quarter ended July 31, 2019.
Total revenue for the quarter was $145.8 million, up 96% year-over-year with GAAP income from operations for the quarter ending on $2.3 million, compared to $3.4 million in the second quarter of fiscal 2019.
After adjusting for stock-based compensation expense and related payroll taxes, non-GAAP income from operations for the second quarter was $20.7 million, up from $4.5 million in the second quarter of fiscal 2019. For the second quarter, GAAP operating margin was 1.6% and non-GAAP operating margin was 14.2%.
Drivers of total revenue include acquiring new customers and expanding across existing customers. At the end of the second quarter of fiscal 2020, Zoom had around 66,300 customers with more than 10 employees, up approximately 78% from the same quarter last year.
Over 400 customers contributed more than $100,000 in trailing 12 months revenue, up approximately 104% from the same quarter last year. Zoom also detailed a trailing 12-month net dollar expansion rate in customers with more than 10 employees above 130% for the 5th consecutive quarter.
Looking forward, Zoom is providing guidance for its third quarter fiscal 2020 and its full year fiscal 2020 of total revenue between $155.0 million and $156.0 million and non-GAAP income from operations between $6.0 million and $7.0 million. Q3 non-GAAP EPS is expected to be approximately $0.03 with approximately 294 million non-GAAP weighted average shares outstanding.
Total revenue is expected to be between $587 million and $590 million for the Full Year Fiscal 2020 and non-GAAP income from operations is expected to be between $42 million and $45 million. Full year non-GAAP EPS is expected to be approximately $0.18 to $0.19 with approximately 293 million non-GAAP weighted average shares outstanding.
Eric S. Yuan, founder and chief executive officer of Zoom said “Zoom delivers happiness to our customers by providing a frictionless unified communications platform capable of transforming how teams communicate and collaborate.
"Our technology enables businesses to make decisions faster, strengthens engagement, and increases productivity. I am proud that we continue to build trust and create value for customers as evidenced by our strong combination of total revenue growth of 96% with increased profitability and free cash flow in Q2."